Warning signs that you are heading towards financial troubles
If you’re having trouble making ends meet, you may be wondering if you’re headed towards being insolvent. The short answer is that it depends on what’s going on in your life, but there are some warning signs to look out for.
If you’re struggling with debt and have been for a while, it could be time to start thinking about looking into dealing with your debt through a consumer proposal or bankruptcy filing.
The first thing that you can do is check your credit score. You can get free access to your credit report from Equifax Canada or TransUnion Canada. They’ll let you know what your credit score is and give you an overview of how much debt you have and how much money is owed on each account.
If your score isn’t in the high 700s (or even if it is), that doesn’t necessarily mean you need to panic. But it does mean that if something goes wrong—like losing your job, getting sick or injured, or having a major life change—it could be tough for you to keep up with payments and avoid becoming insolvent.
Here are a few warning signs of becoming insolvent:
Your creditors have filed statements of claims against you and are proceeding to Court to obtain a judgment for the unpaid debt or have already done so;
You are being contacted by a collection agency or creditor about your payments;
You have no savings, and only have enough money in the bank to cover two weeks’ worth of expenses;
You are only making minimum payments on your credit cards and other payments or borrowing on one credit card to pay another;
You’re facing foreclosure or repossession on any property you own;
You’ve been turned down for credit because your credit score is too low or your borrowing capacity has been reached;
You’re struggling to make ends meet on a monthly basis and are resorting to pay-day loans;.
You have stopped paying your creditors.
If you recognize any of these signs, it is time to consider seeking help from a Licensed Insolvency Trustee (“LIT”). The sooner you get help, the sooner you can start putting your finances back in order and rebuilding your credit. A LIT will review your situation with you and review all of your options for dealing with your debt.
At JW Weber & Associates Inc. we offer a free consultation to review your options with you. Call us today at 403-836-6690 or email us at firstname.lastname@example.org or visit our website at correctthedebts.com to book your free consultation.